Stable fees support Blue Owl Capital
The guest presented a bullish case for Blue Owl Capital, arguing its permanent capital structure and high dividend yield offer stability despite recent headline risks.
The argument
The guest noted that the vast majority of the company's assets under management are permanent capital, ensuring stable fee generation across verticals like real estate and data centers. High option volatility allows investors to write out-of-the-money puts or calls to capture high yields alongside a ~9.5% dividend.
The thesis, stress-tested
✓ What validates it
- ✓Stabilization or growth in permanent assets under management
- ✓Maintenance of the ~9.5% dividend yield in upcoming quarters
▸ Risks discussed
- ▸Headline risk and negative public sentiment
- ▸Real estate sector headwinds from elevated interest rates
Hear it yourself
"But when you're selling puts, you're kind of manufacturing that in a way where if that stock doesn't drop to your level, you're still able to profit because sometimes you'll be buying, let's say Google or Meta or something like that and the stock runs away from you where you can't buy that full position that maybe you wanted. Maybe maybe it had already run up. You get in, you you establish a foothold in the stock, but you you haven't built the full one. You're just a little cautious on it, and you're kind of expecting it to drop at some point, But you might not get that chance."
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